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1996 Supreme(Mad) 1275
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE SATHASIVAM
The Special Tahsildar for Urban Land Tax Taluk Office Compound Kancheepuram Town & Taluk
Versus
The Secretary, Kancheepuram Co-operative House Building, Society Ltd., Chengalpattu
CRP. No. 3083 & 3084 of 1995 & CMP. No. 16160 of 1996
Decided On :Decided on : 28-12-1996
For the Petitioner: Ravi Raja Pandian Additional Government Pleader.
For the Respondent:S.D.N. Vimalanathan Advocate.
The definition of "owner" in Section 2(10) of the Urban Land Tax Act is wide and includes persons who receive or are entitled to receive rent or profits from urban land.
Headnote:
URBAN LAND TAX ACT - OWNERSHIP - SECTION 2(10) - DEFINITION OF OWNER - ALLOTMENT OF PLOTS BY HOUSING SOCIETY - WHETHER SOCIETY IS OWNER OF PLOTS FOR PURPOSE OF URBAN LAND TAX.
Fact of the Case:
The Kancheepuram Co-operative House Building Society acquired land, laid out a housing colony, and allotted plots to its members. The society did not execute registered sale deeds in favor of the allottees, and the plots remained vacant. The Special Tahsildar, Urban Land Tax, imposed urban land tax on the society, holding that it was the owner of the plots. The society appealed to the Urban Land Tax Tribunal, which set aside the order of the Special Tahsildar. The Special Tahsildar filed revisions in the High Court.
Finding of the Court:
The High Court held that the society was not the owner of the plots for the purpose of urban land tax. The court noted that the society had allotted the plots to its members, who had the right to construct houses on the plots or obtain loans to do so. The court also noted that the society's purpose was to provide housing to its members, and that the absence of registered sale deeds was not fatal to its case.
Issues: Whether the society was the owner of the plots for the purpose of urban land tax.
Ratio Decidendi: The court held that the society was not the owner of the plots because it did not receive or entitle to receive rent or profits from the plots. The court also noted that the allottees had the right to construct houses on the plots or obtain loans to do so, and that the society's purpose was to provide housing to its members.
Final Decision: The court dismissed the revisions filed by the Special Tahsildar, Urban Land Tax.
1. Aggrieved against the order of the Urban Land Tax Tribunal (Subordinate Judge), Kancheepuram, dated 11.7.1994 and made in CMA. Nos. 36 and 38 of 1993. The Special Tahsildar, Urban Land Tax, Kancheepuram, has filed the above two revisions under Article 227 of the Constitution of India, before this Court.
2. The respondent herein in both the cases is Kancheepuram Co-operative House Building Society. The facts leading to the filing of the above revisions as seen from the pleadings of both parties are narrated hereunder.
3. The respondent herein is a registered Housing Society and its primary object is to acquire lands, lay out and re-distribute to the needy houseless persons as per the policy and schemes of the Government of Tamil Nadu in the Co-operation Department. The said society after acquiring certain lands for the above said purpose laid out the area into a housing colony by name Dr. Arignar Anna Nagar and got the approval from Director of Town and Country Planning by dividing it into 161 plots after allocating almost 1/3rd of the entire area for public purposes such as street, play-ground, park etc., for the use of plot owners even as early as in the year 1985. It is further averred that the society has already allotted the said plots to its various members as early as on 30.3.1988 by the resolution No. 145 and necessary allotment orders along with delivery of possession to the allottees was done. The public roads and public places are being maintained and prepared for further improvement for the use of the allottees. The allottees right from 1988 are entitled to construct their own houses with then own funds or can obtain a no objection certificate and get loan from Governmental Agencies or can themselves apply for loan from the Society. An order of allotment coupled with the delivery of possession of the site to the respective allottee is the mode of transfer and accepted in the Co-operative Department and its Governmental Agencies in respect of such allotments. A regular immediate transfer deed executed and registered was not given to the allottees to see that the allottee himself construct the building instead of speculating and alienating to third parties and defeating the purpose of housing under Co-operative schemes. Hence, the absence of formal usual registered sale deed in not fatal to the case of the Society and it cannot be said to be the owner of the 202 grounds on the date of impugned owner.
4. It is seen from the order of the first authority viz., Assistant Commissioner, Urban Land Tax, that the Society has to pay a sum of Rs. 47,932 towards Urban Land Tax for Fell 1401 onwards with penalty for not filing the returns in time.
5. Aggrieved against the said order, the Society has filed appeals viz., CMA. Nos. 36 and 38 of 1993 before the Appellate Authority, viz., Tamil Nadu Urban Land Tax Tribunal, Kancheepuram. Before the Tribunal, the Society put forth their case regarding the object of the said Society, the manner and mode of distribution of various plots after laying out to the houseless members of the said Society. The Society has also pleaded that as per the provisions of the Urban Land Tax Act more particularly in the light of S. 2 Sub-clause 10 contended that Society is not the owner of the said lands, hence the impugned order levying urban land tax on the entire holding of the lands by the first authority is contrary to law and prayed to set aside the said order. Even though notice has been served on the Special Tahsildar Urban Land Tax, Kancheepuram, nobody appeared before the Appellate Authority. By order dt. 11.7.1994 after considering the case of the appellant and in the light of the provisions referred above allowed both the appeals and set aside the order of the Assistant Commissioner, Urban Land Tax, Kancheepuram. Aggrieved by the said orders, the Special Tahsildar, Urban Land Tax, who fail to appear before the Appellate Authority has been approached this Court by way of present r
